LECTURE 2 LEGAL ISSUES IN A GLOBAL ENVIRONMENT International Construction Practices

Lecture Objectives The purpose of today’s lecture is to cover the following topics: 1. Lecture introduction (Jaselskis) 2. Legal issues in a global environment (Mike Loulakis, call-in) 3. Review Discussion Questions (NC STATE lead) 4. Review progress on First Assignment (Global Construction Practices) 5. Next class

Legal and Procurement Issues Michael C. Loulakis, President, Capital Project Strategies  More than 30 years of legal and consulting experience in all aspects of the construction industry  His company concentrates on developing the project delivery, procurement, contracting and risk management strategies for both domestic and international projects.  Background in EPC, design-build and other alternative project delivery systems  Civil Engineering degree from Tufts University  Has written “The Law” column for Civil Engineering Magazine since 1981  Member, National Academy of Construction

Legal Considerations in Construction Contracting Michael C. Loulakis, President, Capital Project Strategies

Discussion Questions (NC STATE Lead) 1. Explain political risk and how it affects E&C contracts. 2. Explain some of the general differences between FIDIC and AIA contract documents. 3. Why is international arbitration a better way to settle international contract disputes than litigation? 4. What mitigation strategies that could be used to reduce construction delays when there are equipment and material delivery problems?

Next Week—Culture, Communications, Conflict, and Leadership Read Chapter 2 in GE&C Watch pre-recorded lectures by Drs. Avi Wiezel (~60 minutes) and Mahalingam (~58 minutes) Team Assignments  Work on Discussion Question (IIT-Madras)—see next slide for questions  Work First Assignment

Discussion Questions for Next Class (IIT- Madras Lead) 1. Describe strategies for improving communication on projects that involve people from many different countries. 2. How does culture influence what leadership style should be used on a global construction project? 3. Explain why proper translations are essential for the engineering plans, contracts, and specifications that are used to build global projects. Provide examples of technical E&C terms that cannot be translated into other languages. 4. Explain why some global construction projects employ more people than are really necessary to build projects and why more elaborate structures could be required than necessary.

NC STATE Team Assignments*:  Team 1: Country Background Information and Construction Industry Trends  Team 2: Means and Methods  Team 3: Safety Regulations  Team 4: Labor Regulations  Team 5: Environmental Regulations  Team 6: Project Management and Contracting Approaches  Team 7: Design Codes and Standards  Team 8: Financing, Banking, and Insurance Requirements  Team 9: Construction Education and Training First Assignment *See spreadsheet for team assignments

First Assignment Schedule (NC STATE) Monday, February 8: 1 st Draft due (report and presentation) Friday, February 15: Comments due Dr. Jaselskis Colleagues and team leaders Monday, February 22: Final Draft (presentation and report) Monday, February 29: Presentation and report due. Send it to your Team leader Assign your portion to one of your colleagues for editing Apply/discuss comments on report and presentation Select Presenters

10 Questions and Discussion